- --------------------------------------------------------------------------------
CBA(R) CBA
- --------------------------------------------------------------------------------
CBA CBA
- --------------------------------------------------------------------------------
CBA Money Fund
- --------------------------------------------------------------------------------
Annual Report
February 29, 2000
<PAGE>
CBA Money Fund
Dear Shareholder:
For the six-month period ended February 29, 2000, CBA Money Fund paid
shareholders a net annualized dividend of 5.09%.* The Fund's 7-day yield as of
February 29, 2000 was 5.29%.
The average portfolio maturity for CBA Money Fund at February 29, 2000 was 59
days, compared to 71 days at August 31, 1999.
The Environment
The US economy continued to enjoy above-average growth during the last half of
1999 and into the first quarter of 2000. Gross domestic product (GDP) growth for
the last six months of 1999 grew at a rate of 6.3%, well above expectations this
far into the current economic cycle, and much higher than the target for GDP set
by the Federal Reserve Board. Currently, more Americans have jobs and are
enjoying increases in their income as seen in the low unemployment rate and
large number of new jobs created (283,000 average for the fourth quarter). This,
as well as the relentless rise in equity prices, has created a momentum in
consumer demand that has yet to be dampened by rising interest rates.
The recovery of overseas economies boosted export levels that suffered during
the first half of 1999, contributing to the strong US GDP. The Federal Reserve
Board remains concerned that although productivity gains are high, they cannot
keep pace with the demand, and imbalances are developing in the economy that may
soon prove to be inflationary. A more visible sign of pressure is the price of
oil, which recently exceeded $30 per barrel. Oil price pressures are expected to
continue during the spring and summer since oil inventories are low. The outlook
for an increased oil supply is uncertain, as the Organization of Petroleum
Exporting Countries has just begun meeting to discuss production quotas.
The Federal Reserve Board took extraordinary steps to ensure liquidity in the
financial markets because of Year 2000 concerns. The Federal Reserve Board moved
to tighten policy once during the last quarter of 1999, but adopted a neutral
bias through year-end in an effort to reassure investors and eliminate
uncertainty. However, growth remained strong and another 25 basis point (0.25%)
interest rate hike was implemented in early February. At that time, the Treasury
announced anticipated changes to the auction schedule. The Federal budget
surplus has made it necessary to decrease the amount of securities sold by the
Treasury, therefore changes will include reduced auctions and auction sizes as
well as a buy-back program (the Treasury intends to buy back old, off-the-run,
less-liquid issues in order to keep current issues liquid). The announcement
caused unexpected results as the yield curve inverted dramatically as investors
rushed to buy the longer issues. At this time, it is unclear when this technical
inversion will be unwound.
Portfolio Matters
During the six-month period ended February 29, 2000, much of the focus was on
the increased supply in the market as issuers attempted to be funded into 2000.
As a result, yield spreads widened greatly, creating extremely attractive
commercial paper levels. Because of the greater supply and increased funding
costs, issuers turned to the floating rate market. We particularly favored
one-year and three-month London Interbank Office Rate linked floating rate notes
as these securities enabled us to take advantage of rising interest rates. More
recently, we have been selectively purchasing one-year, fixed rate certificates
of deposits at yields that provide compensation for higher future interest
rates. We will continue to maintain a defensive position as we believe that
further short-term interest rate increases will be forthcoming as long as the
current economic momentum continues.
* Based on a constant investment throughout the period, with dividends
compounded daily, and reflecting a net return to the investor after all
expenses.
1
<PAGE>
The portfolio's composition at the end of the February period and as of our last
report is detailed below:
2/29/00 8/31/99
------- -------
Bank Notes ...................................... 7.6% 8.2%
Certificates of Deposit ......................... 1.0 1.0
Certificates of Deposit--
European ...................................... -- 1.1
Certificates of Deposit--
Yankee++ ...................................... 10.3 9.2
Commercial Paper ................................ 50.5 48.9
Corporate Notes ................................. 2.7 1.8
Master Notes &
Funding Agreements ............................ 2.5 3.7
Medium-Term Notes ............................... 15.9 14.2
Promissory Notes ................................ 1.6 --
US Government &
Agency Obligations--
Discount Notes ................................ -- 1.5
US Government &
Agency Obligations--
Non-Discount Notes ............................ 7.8 10.0
Other Assets Less Liabilities ................... 0.1 0.4
----- -----
100.0% 100.0%
===== =====
++ US branches of foreign banks.
In Conclusion
We appreciate your continued support of CBA Money Fund, and we look forward to
assisting you with your financial needs in the months and years ahead.
Sincerely,
/s/ Terry K. Glenn
Terry K. Glenn
President and Trustee
/s/ Robert Sabatino
Robert Sabatino
Vice President and Portfolio Manager
March 27, 2000
Officers and Trustees
Terry K. Glenn--President and Trustee
Ronald W. Forbes--Trustee
Cynthia A. Montgomery--Trustee
Charles C. Reilly--Trustee
Kevin A. Ryan--Trustee
Richard R. West--Trustee
Arthur Zeikel--Trustee
Kevin J. McKenna--Senior Vice President
Joseph T. Monagle, Jr.--Senior Vice President
Robert Sabatino--Vice President
Donald C. Burke--Vice President and Treasurer
Ira P. Shapiro--Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 1713
Boston, MA 02101
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, FL 32246-6484
(800) 221-7210*
* For inquiries regarding your CBA account, call (800) 247-6400.
2
<PAGE>
CBA Money Fund
Schedule of Investments as of February 29, 2000 (in Thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Face Interest Maturity
Issue Amount Rate* Date Value
- -----------------------------------------------------------------------------------------
Bank Notes--7.6%
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Express $20,000 5.95+% 4/17/00 $ 20,000
Centurion Bank 25,000 5.95+ 4/27/00 25,000
30,000 5.95+ 5/10/00 30,000
30,000 6.00+ 7/13/00 30,000
- -----------------------------------------------------------------------------------------
First USA Bank NA 20,000 6.215 10/18/00 19,903
- -----------------------------------------------------------------------------------------
KeyBank NA 25,000 6.235+ 3/20/00 25,002
- -----------------------------------------------------------------------------------------
NationsBank NA 25,000 5.92+ 3/16/00 25,000
- -----------------------------------------------------------------------------------------
U.S. Bank, NA 10,000 5.96+ 12/20/00 10,003
- -----------------------------------------------------------------------------------------
Total Bank Notes (Cost--$184,994) ........................................ 184,908
- -----------------------------------------------------------------------------------------
Certificates of Deposit--1.0%
- -----------------------------------------------------------------------------------------
First Union
National Bank 25,000 5.96+ 8/31/00 24,827
- -----------------------------------------------------------------------------------------
Total Certificates of Deposit (Cost--$25,000) ............................ 24,827
- -----------------------------------------------------------------------------------------
Certificates of Deposit--Yankee--10.3%
- -----------------------------------------------------------------------------------------
Bank Austria AG, NY 22,000 6.06 11/20/00 21,919
- -----------------------------------------------------------------------------------------
Bank of Nova Scotia, NY 25,000 6.78 2/22/01 25,019
- -----------------------------------------------------------------------------------------
Commerzbank AG, NY 10,000 5.17 3/31/00 9,991
35,000 5.81+ 4/10/00 34,998
20,000 5.15 5/08/00 19,957
- -----------------------------------------------------------------------------------------
Credit Agricole 20,000 5.16 4/03/00 19,981
Indosuez, NY
- -----------------------------------------------------------------------------------------
Credit Communal de 10,000 5.96 10/02/00 9,968
Belgique, NY
- -----------------------------------------------------------------------------------------
Credit Suisse First 25,000 5.97+ 6/07/00 24,999
Boston, NY
- -----------------------------------------------------------------------------------------
Deutsche Bank AG, NY 25,000 5.88+ 4/26/00 24,997
22,000 5.62 6/26/00 21,946
- -----------------------------------------------------------------------------------------
UBS AG, NY 10,000 5.25 3/10/00 9,998
25,000 5.29 5/18/00 24,946
- -----------------------------------------------------------------------------------------
Total Certificates of Deposit--Yankee
(Cost--$248,943) ......................................................... 248,719
- -----------------------------------------------------------------------------------------
Commercial Paper--50.5%
- -----------------------------------------------------------------------------------------
AT&T Corporation 35,000 5.99+ 7/13/00 35,000
25,000 5.946+ 8/07/00 25,000
- -----------------------------------------------------------------------------------------
Abbey National Corp. NA 50,000 6.08 8/30/00 48,475
- -----------------------------------------------------------------------------------------
Amsterdam Funding 21,000 5.87 4/06/00 20,874
Corporation 25,000 5.88 4/13/00 24,822
10,000 5.87 4/18/00 9,921
12,000 5.88 4/20/00 11,901
25,000 5.94 5/04/00 24,735
- -----------------------------------------------------------------------------------------
Apreco, Inc. 15,850 5.80 3/10/00 15,824
25,000 5.88 4/17/00 24,806
12,000 5.91 5/15/00 11,851
- -----------------------------------------------------------------------------------------
Asset Securitization 25,000 6.00+ 3/13/00 25,000
Cooperative Corp.
- -----------------------------------------------------------------------------------------
Bear Stearns 17,000 5.79 3/09/00 16,976
Companies, Inc 27,000 5.88 3/22/00 26,906
- -----------------------------------------------------------------------------------------
CSW Credit Inc. 18,950 5.82 3/21/00 18,886
- -----------------------------------------------------------------------------------------
CXC Incorporated 25,000 5.81 3/09/00 24,964
50,000 5.995+ 3/15/00 50,000
25,000 5.94 5/24/00 24,645
- -----------------------------------------------------------------------------------------
Caterpillar Inc. 28,030 6.10 8/17/00 27,236
- -----------------------------------------------------------------------------------------
Credit Suisse 25,000 5.95 6/15/00 24,559
First Boston Inc.
- -----------------------------------------------------------------------------------------
Credit Suisse First 20,000 5.90 5/10/00 19,768
Boston International Ltd.
(Guernsey)
- -----------------------------------------------------------------------------------------
DaimlerChrysler North 36,750 5.98 6/21/00 36,065
America Holdings Corp.
- -----------------------------------------------------------------------------------------
Den Norske Bank ASA 11,207 5.85 4/14/00 11,125
- -----------------------------------------------------------------------------------------
Finova Capital Corp. 15,000 6.06+ 3/20/00 15,000
10,000 5.87 4/11/00 9,932
25,000 5.90 4/11/00 24,830
25,000 5.97 5/25/00 24,648
- -----------------------------------------------------------------------------------------
Fortis Funding LLC 45,000 5.825 4/03/00 44,752
- -----------------------------------------------------------------------------------------
France Telecom 25,000 5.93 5/04/00 24,735
- -----------------------------------------------------------------------------------------
GTE Corporation 25,000 5.83 3/15/00 24,939
25,000 5.82 3/17/00 24,931
- -----------------------------------------------------------------------------------------
General Motors 20,000 5.72 3/13/00 19,959
Acceptance Corp.
- -----------------------------------------------------------------------------------------
Grand Funding Corp. 17,084 5.87 4/06/00 16,982
20,000 5.86 4/18/00 19,841
22,175 5.88 4/19/00 21,996
- -----------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
CBA Money Fund
Schedule of Investments as of February 29, 2000 (continued) (in Thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Face Interest Maturity
Issue Amount Rate* Date Value
- -----------------------------------------------------------------------------------------
Commercial Paper (concluded)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Greenwich $10,141 5.82% 3/28/00 $ 10,095
Funding Corp. 25,000 5.85 4/20/00 24,794
38,930 5.94 4/28/00 38,557
- -----------------------------------------------------------------------------------------
Kitty Hawk
Funding Corp. 20,000 5.80 3/20/00 19,937
- -----------------------------------------------------------------------------------------
Knight-Ridder, Inc. 10,100 5.93 5/18/00 9,969
- -----------------------------------------------------------------------------------------
Lehman Brothers 15,000 5.95 3/21/00 14,950
Holdings Inc. 25,000 6.17 8/17/00 24,292
- -----------------------------------------------------------------------------------------
Old Line Funding Corp. 7,005 5.95 5/23/00 6,907
- -----------------------------------------------------------------------------------------
Riverwoods Funding 20,000 5.85 4/25/00 19,818
Corp. 10,000 5.92 5/03/00 9,896
- -----------------------------------------------------------------------------------------
Tulip Funding Corp. 33,205 5.81 3/07/00 33,167
20,000 5.88 4/19/00 19,839
38,152 5.90 4/19/00 37,844
- -----------------------------------------------------------------------------------------
UBS Finance
Delaware Inc. 3,620 5.83 3/01/00 3,619
- -----------------------------------------------------------------------------------------
Variable Funding 25,000 5.85 4/25/00 24,773
Capital Corp. 50,000 5.85 4/26/00 49,538
30,000 5.85 4/27/00 29,718
15,000 5.91 5/09/00 14,829
- -----------------------------------------------------------------------------------------
Total Commercial Paper (Cost--$1,224,317) ................................ 1,224,426
- -----------------------------------------------------------------------------------------
Corporate Notes--2.7%
- -----------------------------------------------------------------------------------------
LINCS, Series 1998-2 10,000 5.905+ 3/01/00 10,000
10,000 5.913+ 3/01/01 10,000
- -----------------------------------------------------------------------------------------
LINCS, Series 1998-6 14,500 5.955+ 10/18/00 14,500
- -----------------------------------------------------------------------------------------
Restructured Asset 8,000 5.93+ 8/11/00 7,998
Securities with Enhanced
Returns, Series
1998-MM-7-1 Trust
- -----------------------------------------------------------------------------------------
SMM Trust, Series
1999-H 23,000 6.255+ 9/25/00 23,000
- -----------------------------------------------------------------------------------------
Total Corporate Notes (Cost--$65,500) .................................... 65,498
- -----------------------------------------------------------------------------------------
Funding Agreements--2.5%
- -----------------------------------------------------------------------------------------
Jackson National Life 25,000 5.876+ 5/01/00 25,000
Insurance Co.
- -----------------------------------------------------------------------------------------
Metropolitan Life 13,000 5.906+ 5/01/00 13,000
Insurance Company
- -----------------------------------------------------------------------------------------
Monumental Life 10,000 6.001+ 11/17/00 10,000
Insurance Company
- -----------------------------------------------------------------------------------------
Principal Life Insurance 5,000 5.956+ 8/16/00 5,000
Company
- -----------------------------------------------------------------------------------------
Security Life 7,000 5.98+ 3/23/00 7,000
of Denver
Insurance Co.
- -----------------------------------------------------------------------------------------
Total Funding Agreements (Cost--$60,000) ................................. 60,000
- -----------------------------------------------------------------------------------------
Medium-Term Notes--15.9%
- -----------------------------------------------------------------------------------------
AT&T Capital
Corporation 25,000 7.571+ 6/14/00 25,099
- -----------------------------------------------------------------------------------------
American Honda 24,750 5.856+ 8/01/00 24,747
Finance Corp. 17,750 6.138+ 11/07/00 17,750
- -----------------------------------------------------------------------------------------
Associates 30,000 5.90 6/23/00 29,948
Corporation of
North America
- -----------------------------------------------------------------------------------------
Avco Financial 10,000 6.214+ 3/31/00 10,000
Services Inc.
- -----------------------------------------------------------------------------------------
Beneficial Corp. 10,000 6.20+ 3/13/00 10,000
- -----------------------------------------------------------------------------------------
The CIT Group 20,000 5.89+ 3/27/00 19,999
Holdings, Inc. 23,000 5.905+ 5/30/00 22,997
- -----------------------------------------------------------------------------------------
Ford Motor Credit 6,000 6.375+ 4/03/00 6,001
Company 12,000 5.95+ 5/05/00 12,000
20,000 5.95+ 5/23/00 20,000
16,000 6.174+ 10/02/00 16,002
25,000 5.86+ 11/24/00 24,991
- -----------------------------------------------------------------------------------------
General Electric
Capital Corp. 5,500 6.041+ 5/03/00 5,500
- -----------------------------------------------------------------------------------------
General Motors 5,000 7.00 3/01/00 5,000
Acceptance Corp. 10,000 5.75 7/28/00 9,971
18,000 6.10+ 9/01/00 17,996
20,000 6.033+ 10/06/00 19,997
8,000 6.26+ 12/01/00 8,005
7,000 6.14+ 2/27/01 6,994
- -----------------------------------------------------------------------------------------
Goldman Sachs 14,000 6.00 8/07/00 13,946
Group, Inc. 5,000 6.12+ 3/14/01 5,000
- -----------------------------------------------------------------------------------------
Wells Fargo & Co. 10,000 5.225 4/10/00 9,991
10,000 6.064+ 4/26/00 9,999
- -----------------------------------------------------------------------------------------
Xerox Capital 5,000 5.974+ 7/19/00 4,998
(Europe) PLC
- -----------------------------------------------------------------------------------------
Xerox Corp. 20,000 5.70 7/26/00 19,904
- -----------------------------------------------------------------------------------------
Xerox Credit Corp. 9,000 5.87+ 4/06/00 8,999
- -----------------------------------------------------------------------------------------
Total Medium-Term Notes (Cost--$386,079) ................................. 385,834
- -----------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
CBA Money Fund
Schedule of Investments as of February 29, 2000 (concluded) (in Thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
Face Interest Maturity
Issue Amount Rate* Date Value
- -----------------------------------------------------------------------------------------
Promissory Notes--1.6%
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Goldman Sachs $40,000 5.926+% 7/07/00 $ 40,000
Group, Inc.
- -----------------------------------------------------------------------------------------
Total Promissory Notes (Cost--$40,000) ................................... 40,000
- -----------------------------------------------------------------------------------------
US Government & Agency Obligations--
Non-Discount Notes--7.8%
- -----------------------------------------------------------------------------------------
Federal Home Loan 23,000 6.278+ 7/14/00 22,996
Banks
- -----------------------------------------------------------------------------------------
Federal Home Loan 25,000 6.318+ 7/14/00 24,995
Mortgage Corporation 10,000 5.05 11/17/00 9,911
10,000 5.18 11/24/00 9,917
5,000 5.25 1/19/01 4,950
5,000 5.15 1/26/01 4,944
- -----------------------------------------------------------------------------------------
Federal National 12,000 4.89 10/13/00 11,880
Mortgage Association 5,000 5.21 1/26/01 4,940
10,000 5.37 4/05/01 9,871
- -----------------------------------------------------------------------------------------
Student Loan 35,000 6.468+ 9/29/00 34,996
Marketing Association 20,000 6.338+ 8/23/01 19,989
- -----------------------------------------------------------------------------------------
US Treasury Notes 10,000 6.375 5/15/00 10,009
5,800 4.50 9/30/00 5,742
5,000 4.625 12/31/00 4,931
8,200 5.00 4/30/01 8,074
- -----------------------------------------------------------------------------------------
Total US Government & Agency Obligations--
Non-Discount Notes (Cost--$189,002) ...................................... 188,145
- -----------------------------------------------------------------------------------------
Total Investments (Cost--$2,423,835)--99.9% .............................. 2,422,357
Other Assets Less Liabilities--0.1% ...................................... 3,531
----------
Net Assets--100.0% ....................................................... $2,425,888
==========
=========================================================================================
</TABLE>
* Commercial Paper and certain US Government & Agency Obligations are traded
on a discount basis; the interest rates shown reflect the discount rates
paid at the time of purchase by the Fund. Other securities bear interest
at the rates shown, payable at fixed dates or upon maturity. Interest
rates on variable rate securities are adjusted periodically based upon
appropriate indexes; the interest rates shown are those in effect at
February 29, 2000.
+ Variable rate notes.
See Notes to Financial Statements.
5
<PAGE>
CBA Money Fund
Statement of Assets and Liabilities as of February 29, 2000
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Investments, at value (identified cost--$2,423,835,177*) ............................. $ 2,422,357,419
Cash ................................................................................. 11,345
Interest receivable .................................................................. 15,477,113
Prepaid registration fees and other assets ........................................... 82,670
---------------
Total assets ......................................................................... 2,437,928,547
---------------
Liabilities:
Payables:
Securities purchased ............................................................... $ 10,000,000
Distributor ........................................................................ 738,297
Investment adviser ................................................................. 678,771
Beneficial interest redeemed ....................................................... 5,286
Dividend to shareholders ........................................................... 707 11,423,061
-------------
Accrued expenses and other liabilities ............................................... 617,277
---------------
Total liabilities .................................................................... 12,040,338
---------------
Net Assets ........................................................................... $ 2,425,888,209
===============
Net Assets Consist of:
Shares of beneficial interest, $.10 par value, unlimited number of shares authorized . $ 242,736,597
Paid-in capital in excess of par ..................................................... 2,184,629,370
Unrealized depreciation on investments--net .......................................... (1,477,758)
---------------
Net Assets--Equivalent to $1.00 per share based on 2,427,365,967 shares of
beneficial interest outstanding ...................................................... $ 2,425,888,209
===============
</TABLE>
* The aggregate cost of investments at February 29, 2000 for Federal income
tax purposes was $2,423,835,177. As of February 29, 2000, net unrealized
depreciation for Federal income tax purposes amounted to $1,477,758, of
which $175,646 related to appreciated securities and $1,653,404 related to
depreciated securities.
See Notes to Financial Statements.
6
<PAGE>
CBA Money Fund
Statement of Operations for the Year Ended February 29, 2000
<TABLE>
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment Income:
Interest and amortization of premium and discount earned ............................. $ 132,667,324
Expenses:
Investment advisory fees ............................................................. $ 10,117,569
Transfer agent fees .................................................................. 3,490,738
Distribution fees .................................................................... 3,021,428
Accounting services .................................................................. 184,424
Printing and shareholder reports ..................................................... 175,153
Custodian fees ....................................................................... 116,321
Registration fees .................................................................... 111,588
Trustees' fees and expenses .......................................................... 38,971
Professional fees .................................................................... 26,636
-------------
Total expenses ....................................................................... 17,282,828
---------------
Investment Income--Net ............................................................... 115,384,496
Realized Loss on Investments--Net .................................................... (16,789)
Change in Unrealized Depreciation on Investments--Net ................................ (770,957)
---------------
Net Increase in Net Assets Resulting from Operations ................................. $ 114,596,750
===============
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended
------------------------------------
CBA Money Fund February 29, February 28,
Statements of Changes in Net Assets 2000 1999
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations:
Investment income--net ............................................................... $ 115,384,496 $ 115,833,062
Realized gain (loss) on investments--net ............................................. (16,789) 302,644
Change in unrealized depreciation on investments--net ................................ (770,957) (710,304)
--------------- ---------------
Net increase in net assets resulting from operations ................................. 114,596,750 115,425,402
--------------- ---------------
Dividends & Distributions to Shareholders:
Investment income--net ............................................................... (115,367,707) (115,833,062)
Realized gain on investments--net .................................................... -- (302,644)
--------------- ---------------
Net decrease in net assets resulting from dividends and distributions to shareholders (115,367,707) (116,135,706)
--------------- ---------------
Beneficial Interest Transactions:
Net proceeds from sale of shares ..................................................... 5,672,897,263 5,841,797,113
Net asset value of shares issued to shareholders in reinvestment of
dividends and distributions .......................................................... 115,146,469 115,925,296
--------------- ---------------
5,788,043,732 5,957,722,409
Cost of shares redeemed .............................................................. (5,918,673,300) (5,760,405,463)
--------------- ---------------
Net increase (decrease) in net assets derived from beneficial interest transactions .. (130,629,568) 197,316,946
--------------- ---------------
Net Assets:
Total increase (decrease) in net assets .............................................. (131,400,525) 196,606,642
Beginning of year .................................................................... 2,557,288,734 2,360,682,092
--------------- ---------------
End of year .......................................................................... $ 2,425,888,209 $ 2,557,288,734
=============== ===============
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
CBA Money Fund
Financial Highlights
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
For the
The following per share data and ratios have been derived For the Year Ended For the
from information provided in the financial statements. Year Ended February 28, Year Ended
February 29, --------------------------------------- February 29,
Increase (Decrease) in Net Asset Value: 2000 1999 1998 1997 1996
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of year ........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Investment income--net .................................. .0473 .0478 .0497 .0475 .0524
Realized and unrealized gain (loss) on investments--net . (.0003) (.0002) .0001 --* .0001
----------- ----------- ----------- ----------- -----------
Total from investment operations .......................... .0470 .0476 .0498 .0475 .0525
----------- ----------- ----------- ----------- -----------
Less dividends and distributions:
Investment income--net .................................. (.0473) (.0478) (.0497) (.0475) (.0524)
Realized gain on investments--net ....................... -- (.0001) (.0001) --* (.0001)
----------- ----------- ----------- ----------- -----------
Total dividends and distributions ......................... (.0473) (.0479) (.0498) (.0475) (.0525)
----------- ----------- ----------- ----------- -----------
Net asset value, end of year .............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Investment Return ................................... 5.09% 4.91% 5.10% 4.87% 5.39%
=========== =========== =========== =========== ===========
Ratios to Average Net Assets:
Expenses, net of reimbursement ............................ .70% .70% .70% .69% .75%
=========== =========== =========== =========== ===========
Expenses .................................................. .70% .73% .74% .73% .79%
=========== =========== =========== =========== ===========
Investment income and realized gain on
investments -- net ....................................... 4.68% 4.79% 4.98% 4.71% 5.22%
=========== =========== =========== =========== ===========
Supplemental Data:
Net assets, end of year (in thousands) .................... $ 2,425,888 $ 2,557,289 $ 2,360,682 $ 2,236,660 $ 1,988,000
=========== =========== =========== =========== ===========
</TABLE>
* Amount is less than $.0001 per share.
See Notes to Financial Statements.
8
<PAGE>
CBA Money Fund
Notes to Financial Statements
1. Significant Accounting Policies:
CBA Money Fund (the "Fund") is a money fund whose shares are offered to
subscribers to the Capital Builder Account service of Merrill Lynch, Pierce,
Fenner & Smith Incorporated ("MLPF&S") and to subscribers to the Broadcort
Capital Account service of Broadcort Capital Corp. ("Broadcort"). Shares may
also be purchased by individual investors not subscribing to these services, but
such investors will not receive any of the special features offered as a part of
such services. The Fund is registered under the Investment Company Act of 1940
as a diversified, open-end management investment company. The Fund's financial
statements are prepared in accordance with generally accepted accounting
principles, which may require the use of management accruals and estimates. The
following is a summary of significant accounting policies followed by the Fund.
(a) Valuation of investments--Portfolio securities with remaining maturities of
greater than sixty days, for which market quotations are readily available, are
valued at market value. As securities transition from sixty-one to sixty days to
maturity, the difference between the valuation existing on the sixty-first day
before maturity and maturity value is amortized on a straight-line basis to
maturity. Securities maturing sixty days or less from their date of acquisition
are valued at amortized cost, which approximates market value. For purposes of
valuation, the maturity of a variable rate security is deemed to be the next
coupon date on which the interest rate is to be adjusted. Other investments and
assets for which market quotations are not available are valued at their fair
value as determined in good faith by or under the direction of the Fund's Board
of Trustees.
(b) Repurchase agreements--The Fund invests in money market securities pursuant
to repurchase agreements. Under such agreements, the counterparty agrees to
repurchase the security at a mutually agreed upon time and price. The Fund takes
possession of the underlying securities, marks to market such securities and, if
necessary, receives additional securities daily to ensure that the contract is
fully collateralized. If the counterparty defaults and the fair value of the
collateral declines, liquidation of the collateral by the Fund may be delayed or
limited.
(c) Income taxes--It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no Federal
income tax provision is required.
(d) Security transactions and investment income--Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Interest income (including amortization of premium and
discount) is recognized on the accrual basis.
(e) Prepaid registration fees--Prepaid registration fees are charged to expense
as the related shares are issued.
(f) Dividends and distributions to shareholders--The Fund declares dividends
daily and reinvests daily such dividends (net of non-resident alien tax and
back-up withholding tax withheld) in additional fund shares at net asset value.
Dividends and distributions are declared from the total of net investment income
and net realized gain or loss on investments.
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CBA Money Fund
Notes to Financial Statements
(concluded)
2. Investment Advisory Agreement and Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund Asset
Management, L.P. ("FAM"). The general partner of FAM is Princeton Services, Inc.
("PSI"), an indirect wholly-owned subsidiary of Merrill Lynch & Co., Inc. ("ML &
Co."), which is the limited partner.
FAM is responsible for the management of the Fund's portfolio and provides the
necessary personnel, facilities, equipment and certain other services necessary
to the operations of the Fund. For such services, the Fund pays a monthly fee
based upon the average daily value of the Fund's net assets at the following
annual rates: .50% of the first $500 million of average daily net assets, .425%
of average daily net assets in excess of $500 million but not exceeding $1
billion, and .375% of average daily net assets in excess of $1 billion.
The Fund has adopted a Distribution and Shareholder Servicing Plan in compliance
with Rule 12b-1 under the Investment Company Act of 1940, pursuant to which
MLPF&S and Broadcort each receive a distribution fee under the Distribution
Agreement from the Fund at the end of each month at the annual rate of .125% of
average daily net assets of the Fund attributable to subscribers to the
respective Capital Builder Account and Broadcort Capital Account programs. The
MLPF&S distribution fee is to compensate MLPF&S financial consultants and other
directly involved branch office personnel for selling shares of the Fund and for
providing direct personal services to shareholders. The Broadcort distribution
fee is to compensate selected dealers for activities and services related to the
sale, promotion and marketing of shares of the Fund. The distribution fee is not
compensation for the administrative and operational services rendered to the
Fund by MLPF&S or Broadcort in processing share orders and administering
shareholder accounts.
Financial Data Services, Inc. ("FDS"), a wholly-owned subsidiary of ML & Co., is
the Fund's transfer agent.
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or directors of
FAM, PSI, FDS, and/or ML & Co.
3. Beneficial Interest Transactions:
The number of shares sold, reinvested and redeemed during the years corresponds
to the amounts included in the Statements of Changes in Net Assets for net
proceeds from sale of shares, value of shares reinvested and cost of shares
redeemed, respectively, since shares are recorded at $1.00 per share.
10
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CBA Money Fund
Independent Auditors' Report
The Board of Trustees and Shareholders,
CBA Money Fund:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of CBA Money Fund as of February 29, 2000, the
related statements of operations for the year then ended and changes in net
assets for each of the years in the two-year period then ended, and the
financial highlights for each of the years in the five-year period then ended.
These financial statements and the financial highlights are the responsibility
of the Fund's management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at February
29, 2000 by correspondence with the custodian and broker. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of CBA Money Fund as of
February 29, 2000, the results of its operations, the changes in its net assets,
and the financial highlights for the respective stated periods in conformity
with generally accepted accounting principles.
Deloitte & Touche llp
Princeton, New Jersey
March 29, 2000
CBA Money Fund
Important Tax Information (unaudited)
None of the ordinary income distributions paid daily by CBA Money Fund during
the year ended February 29, 2000 qualify for the dividends received deduction
for corporations. Additionally, there were no long-term capital gains
distributions paid by the Fund during the year.
Of the Fund's ordinary income dividends paid during the year ended February 29,
2000, 6.39% was attributable to Federal obligations. In calculating the
foregoing percentage, expenses of the Fund have been allocated on a pro-rata
basis.
The law varies in each state as to whether and what percentage of dividend
income attributable to Federal obligations is exempt from state income tax. We
recommend that you consult your tax adviser to determine if any portion of the
dividends you received is exempt from state income tax.
Please retain this information for your records.
11
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This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund's
current prospectus. An investment in the Fund is not insured or guaranteed by
the Federal Deposit Insurance Corporation or any other Government agency.
Although the Fund seeks to preserve your investment at $1.00 per share, it is
possible to lose money by investing in the Fund. Past performance results shown
in this report should not be considered a representation of future performance,
which will fluctuate. Statements and other information herein are as dated and
are subject to change.
CBA Money Fund
Box 9011
Princeton, NJ 08543-9011 #11676--2/00
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